Aug 2, 2013

Supply Chain Management

Supply chain management is an essential part of the strategic plan of the organization. Many factors are responsible for the increasing importance of managing the supply chain. This includes the willingness to quickly to changing customer demands, globalization of the market, making supply chains longer, shorter product life cycles and new technologies. In addition, companies are looking to create long-term partnerships with fewer suppliers to improve supply chain performance.
1. Supply chain management is a relatively new concept in business. The development of materials management or purchasing reflects its new strategic role.

2. The companies have on their technique at the base with the raw materials and finished goods inventory, changed isolate more closely with suppliers and customers. This allows companies to more quickly to changing customer requirements.

3. Several factors have an impact on the supply chain, including reducing the number of suppliers, increased competition, shorter product life cycles, technology, early intervention and joint risk or reduced.

4. A successful supply chain requires trust, long-term relationships, sharing information, assets of the organization, and choosing the right type of supply chain.

5. Managed inventory and vendor consignment are becoming more common.

6. ERP systems are a new generation of software that provides ease into a single, unified platform and database for transactions between functional areas within a company and between companies and their customers and suppliers.

7. ERP systems are an outgrowth of MRP.
8. ERP systems reduce the number of errors caused by the use of a common database to shorten the reaction time customer order processing speed and improve the overall communication within the organization.

9. For reasons of ERP failure include lack of management commitment, lack of adequate resources, lack of proper training and lack of communication.

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